Senate Minority Leader Chuck Schumer (D-N.Y.) urged the House of Representatives and White House to ban government officials from wagering on prediction markets after the Senate banned its own members from trading on the platforms.
Schumer, in a statement on social media, called on the lower chamber to follow suit.
The upper chamber's unanimous voice vote has suggested bipartisan support for the ban in the wake of suspected insider trading incidents. The new rule took effect immediately.
Last month, prediction market Kalshi fined and suspended three congressional candidates from using their platform for five years after they placed bets on the outcome of their own races in Minnesota, Texas, and Virginia. Kalshi said those cases were flagged due to its new safeguards that were put into place to block political candidates from trading on their own elections.
Kalshi said in an April 22 statement that "bad actors" attempt to "cheat" on prediction markets, just like traditional financial markets.
Another high-profile case centers on a U.S. Special Forces soldier who has been charged with using classified intel to bet and win on the capture of former Venezuelan leader Nicolás Maduro using Polymarket, one of the largest prediction markets. The case marked the first time the Justice Department has filed insider trading charges involving a prediction market.
In discussing the case last month, President Donald Trump said the "whole world" has become "somewhat of a casino," saying he was never really in favor of it.
"I don't like it conceptually, but it is what it is. No, I think that I'm not happy with any of that stuff, but they have all these different sites. They have predictive markets. It's a crazy world. It's a much different world than it was," Trump told reporters.
Donald Trump Jr., the president’s eldest son, notably serves as an adviser for both Polymarket and Kalshi.